NKGen Biotech appoints new directors to its board

NKGen Biotech, Inc., a company specializing in biological products, has announced the appointment of two new directors to its board, according to a recent SEC filing. Michael Klowden and Kathleen Scott have been elected as Class II and Class III directors, respectively, with immediate effect.

The board's decision, made on Thursday, followed recommendations from the Nomination and Corporate Governance Committee. Klowden, who also takes on roles in the Audit and Compensation Committees, will serve as the Chair of the Governance Committee. Scott will chair the Audit and Compensation Committees and join the Governance Committee.

Both directors will receive compensation as per the company's non-employee director compensation program, which is currently deferred until NKGen Biotech achieves certain funding goals.

NKGen Biotech, previously known as Graf Acquisition Corp. IV, is incorporated in Delaware and headquartered in Santa Ana, California. The company is listed on the Nasdaq Global Market under the ticker NKGN and also has warrants traded on the Nasdaq Capital Market under NKGNW.

The appointments come as part of the company's ongoing governance and oversight strategy. There are no reported arrangements or understanding between the new directors and any other persons or related transactions that would require disclosure under SEC regulations.

This update is based on information from a press release statement filed with the SEC.

In other recent news, NKGen Biotech is facing potential delisting from the Nasdaq Global Market due to failing to meet the minimum bid price requirement and non-compliance with certain listing requirements. The company has proposed a plan to shift to the Nasdaq Capital Market, which has a lower minimum market value requirement, in a bid to regain compliance. It has also issued approximately 162,000 shares of common stock in a debt conversion agreement, a move aimed at partially repaying its debt obligations and potentially expanding its shareholder base.

Additionally, NKGen Biotech has increased its financial commitment and share consideration to Meteora Capital Partners. The company secured $2.75 million in financing through a promissory note with CFIC-2015 NV Family Investments, allowing conversion of outstanding principal and interest into common stock at $2.00 per share.

On the clinical front, NKGen Biotech reported promising preliminary results from its Phase 1/2a clinical trial of troculeucel, a cell therapy for Alzheimer's disease, indicating cognitive improvements in a majority of patients treated with the highest dose. Lastly, three members of its Board of Directors, Michael Klowden, Sangwoo Park, and Kathleen Scott, have resigned, and Pierre Gagnon, the company's Chief Operating Officer, has stepped down but will continue serving as an advisor until November 2024.

InvestingPro Insights

As NKGen Biotech, Inc. (NKGN) appoints new directors to strengthen its governance, recent financial data from InvestingPro paints a challenging picture for the company. The stock's market capitalization stands at a modest $13.76 million, reflecting its current struggles.

InvestingPro Tips highlight that NKGN is trading near its 52-week low, with the stock price having fallen significantly over the past year. This aligns with the reported YTD Price Total Return of -85.85% and a staggering 1 Year Price Total Return of -92.03%. These figures underscore the company's difficult position as it seeks to bolster its leadership.

The company's financial health appears precarious, with InvestingPro data showing an adjusted EBITDA of -$30.23 million for the last twelve months as of Q2 2024. This negative earnings trend is further emphasized by the basic EPS (Continuing Operations) of -$4.35 USD for the same period.

For investors considering NKGN, it's worth noting that InvestingPro offers 10 additional tips for this stock, providing a more comprehensive analysis of its financial situation and market position. As the new directors take their seats, they face the challenge of steering the company towards financial stability and growth in a highly competitive biotech sector.

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